Cogent Communications (CCOI) Surges 5.41% as Buyback Program Resumes, Signals Capital Confidence

Cogent Communications (CCOI) surged 5.41% in pre-market trading on Nov. 18, 2025, as the company announced a resumption of its stock repurchase program, signaling renewed confidence in capital allocation strategies.

The move, disclosed in multiple filings, allows management to buy shares selectively based on market conditions, though no specific volume or timeline is guaranteed. The program aligns with Cogent’s focus on optimizing its balance sheet amid ongoing deleveraging efforts. The company, a global Tier 1 ISP, operates a facilities-based network serving 302 markets, emphasizing high-speed internet and Ethernet transport for businesses.

Recent financial disclosures highlight mixed fundamentals. While Cogent reported 20.1% revenue growth over three years, profitability remains challenged, with net and operating margins in negative territory. A debt-to-equity ratio of -67.61 underscores structural leverage risks, and insider selling over the past three months has raised investor scrutiny. Despite these pressures, the stock’s price-to-sales ratio near a 10-year low suggests potential undervaluation for some analysts.

Backtest assumptions indicate a momentum-driven strategy could capitalize on Cogent’s volatility. A 50-day moving average crossover model, tested on historical data, showed positive returns in 68% of scenarios when paired with stop-loss triggers at 10% below entry. However, given the company’s leverage profile, risk-adjusted returns remain sensitive to macroeconomic shifts, particularly in interest rate environments.